Board of Supervisors — 2026-04-13

Fiscal Year 2026-27 Budget Overview

• The Chief Administrative Officer presented a preliminary budget characterized as a contraction year with $71 million in reductions.
• Total operating expenditures are projected to decrease by 2.9% while funded positions drop by approximately 9%.
• Staff recommended allocating $10 million of one-time funds to capital projects and $2.5 million for safety net stabilization.
• A $9.5 million set-aside was preserved to address a projected $12.5 million general fund deficit in fiscal year 2027-28.

Public Works and Community Services

• Public Works proposed a $214 million operating budget with no position restorations despite a growing deferred maintenance backlog.
• Community Services Department requested $485,000 in one-time funds to restore four parks maintenance positions.
• Discussions covered library funding, differential park fees, and transitioning from gas to electric leaf blowers.

Agricultural, Planning, and Legal Departments

• The Agricultural Commissioner projected a $7.7 million budget with maintained staffing levels due to reduced export and cannabis revenues.
• Planning and Development requested a $134,000 restoration for one Long-Range Planning position potentially covered by a grant.
• County Counsel reduced personnel by one FTE while maintaining outside counsel budgets to handle increased litigation in-house.

Health and Human Services Functional Group

• The County Health Department proposed a $24.3 million reduction including clinic specialty cuts and pharmacy consolidation.
• Animal Services requested a 2.5 FTE restoration to maintain six-day shelter operations against a proposed reduction to four days.
• Department of Social Services requested a $5.3 million restoration for 125 positions to address CalFresh and Child Welfare backlogs.
• Behavioral Wellness reported a 4.4% budget increase driven by cost adjustments while eliminating four vacant positions.

Co-Response Team Collaboration

• Presentations highlighted the program's success in diverting mental health crises from the justice system.
• Stakeholders urged the Board to ensure long-term sustainability and establish data-driven metrics for the initiative.

Board Direction and Next Steps

• No formal motions or votes were taken during the workshop sessions.
• The Board requested staff direction on restorations, one-time fund allocation, and jail housing options.
• A final recommended budget incorporating these discussions is scheduled for release in May.

Agenda Item: Budget Workshop Presentations and Public Comment (Fiscal Year 2026-2027)

Overview and Fiscal Strategy

• The Board conducted a series of budget workshops for the fiscal year 2026-27. The Chief Administrative Officer presented a preliminary budget overview characterizing the year as a "contraction year" with approximately $71 million in reductions to align with available resources. The strategy involves a two-year approach to address the current year while mitigating a projected $12.5 million general fund deficit in fiscal year 2027-28. Total operating expenditures are projected to decrease by 2.9% to $1.64 billion. Funded positions are projected to decrease by approximately 9%, from over 4,700 to 4,300 Full-Time Equivalents (FTE). The plan preserves a $9.5 million set-aside for the projected future deficit. Approximately $12.5 million in one-time general fund dollars were identified, with staff recommending $10 million for capital projects and $2.5 million for safety net stabilization. The Chief Administrative Officer recommended $7.4 million in targeted restorations to address critical safety net impacts.

Departmental Presentations and Discussions

• Public Works: The department presented a preliminary operating budget of approximately $214 million and a capital budget of $45.8 million. Staffing levels were proposed at 322 FTE with no request for position restoration. Discussion focused on the Pavement Condition Index (PCI), which has dropped to 57, and the expectation that deferred maintenance backlogs will grow by approximately 7% despite maintaining the PCI.
• Community Services Department (CSD): The proposed budget is $58.6 million, a reduction of $4 million from the current year, with staffing decreasing from 99.3 FTE to approximately 89 FTE. The department proposed leaving two park ranger and one assistant naturalist position vacant. CSD requested approval to use $485,000 in one-time fund balance and 18% deferred maintenance funding to restore four parks maintenance positions. Discussion included inquiries regarding library funding, differential fee structures for park users, and the replacement of gas leaf blowers with electric alternatives.
• Agricultural Commissioner, Weights and Measures: The department projected an operating budget of $7.7 million with a general fund allocation of approximately $2.3 million. The budget reflects a decrease of roughly $150,000 due to reduced export certification revenues and a contraction in cannabis licensing work. Staffing levels were maintained at 36 FTE. No restoration requests were made.
• Planning and Development: The department presented a budget of approximately $27.2 million, balancing without using fund balances. The proposal includes a reduction of three FTEs (two vacant positions in Long-Range Planning and one in Petroleum). The department requested a restoration of $134,000 for one position in Long-Range Planning, noting a potential grant to cover the cost.
• County Counsel: The department presented a budget of approximately $13.9 million, primarily funded by the general fund. Despite an increase in litigation and advisory work driven by federal regulations, the department reduced personnel by one FTE and maintained its outside counsel budget, achieving savings by handling more work in-house.
• First 5 Santa Barbara County: The department presented a balanced budget with a slight increase of $247,000 in community expenditures. The budget aligns with the 2025-29 Strategic and Fiscal Plan. No restoration requests were made.
• Child Support Services: The department presented an operating budget of $10.8 million, funded entirely by state allocation with no general fund contribution. To offset a 6% bargained equity adjustment and other increased costs, the department proposed eliminating 4.75 vacant positions, resulting in a total of 64.05 FTE. No service level reductions or restoration requests were made.

Health and Human Services Functional Group

• County Health Department: The department presented a recommended operating budget of approximately $99 million, including a one-time fund balance supplement of nearly $4 million. The proposal includes a net reduction of 123 FTEs, bringing the total to 420.3 FTE, with a total budget reduction of nearly $24.3 million.
• Health Centers: Reductions of 97.5 FTEs are proposed in health care centers, resulting in $13.2 million in savings. No clinics are scheduled to close, but specialty care services at the Santa Barbara Health Center will be reduced from five to four, eliminating urology, neurology, and gastroenterology by the end of June.
• Pharmacy: A consolidation of three pharmacies into one central location is proposed, reducing nine FTEs and saving $8.4 million. Patients will be directed to contracted retail pharmacies.
• Animal Services: A reduction of 4.5 FTEs is proposed, which would reduce shelter operating days from six to four. A restoration of 2.5 FTEs is requested to maintain six-day operations.
• Restorations: The department requested a restoration of 16 FTEs (mostly Medical Assistants) and 2.5 FTEs for animal shelter attendants, totaling $2.2 million.
• Discussion: Board members and public commenters expressed concern regarding the impact of clinic reductions on service quality and the potential for patients to be diverted to emergency rooms. Cottage Health presented concerns regarding the shift of patient care to emergency rooms due to proposed cuts. CENCAL Health presented data projecting an increase in the uninsured population from approximately 25,000 in 2027 to over 50,000 by early 2029, with associated annual costs estimated between $9 million and $10 million.
• Department of Social Services: The department presented a proposed budget with a structural deficit exacerbated by federal policy changes (H.R. 1). The proposal includes a reduction of 197 FTEs. The department requested a restoration of 125 positions requiring approximately $5.3 million in General Fund, updated from an initial $4.9 million request. The restoration focuses on 78 FTEs for CalFresh administration and 47 FTEs for Child Welfare Services.
• Discussion: Supervisors and staff discussed the impact of H.R. 1 on CalFresh eligibility and administrative costs, potential future state cost-shifting for Medi-Cal and In-Home Supportive Services (IHSS), and the difficulty of reallocating funds. Staff reported that staffing reductions have led to backlogs in resource family approvals and delays in court reports.
• Behavioral Wellness Department: The department presented a budget with a 4.4% operating budget increase, attributed to salary, benefit, and contracted service provider cost increases. Medi-Cal revenue is projected to grow significantly. The budget includes a general fund contribution of 2.7% to maintain long-term residential services. The department reported the elimination of four vacant positions and a 24% reduction in client no-show rates. Discussion focused on the sustainability of Medi-Cal revenue gains, the impact of eligibility changes on indigent populations, and the Integrated Behavioral Health Plan.
• Co-Response Team: Multiple presentations and public comments addressed the Co-Response Team collaboration between the Behavioral Wellness Department and the Sheriff's Department. Speakers highlighted the program's success in diverting individuals with mental health crises from the justice system and urged the Board to ensure the program's long-term sustainability and establish data-driven metrics.

Public Comment

• Public comment was received on various topics throughout the workshops. Speakers addressed workforce reductions, the impact of cuts on social safety net programs, the Racial Equity Grant, the Co-Response Team, Animal Services, and the Cuyama Valley Family Resource Center. Specific concerns included the potential for increased wait times, delays in services, and the shifting of costs to emergency rooms and law enforcement. Speakers urged the Board to minimize workforce reductions, restore funding for essential services, and consider local revenue solutions such as a sales tax measure.

Motions, Decisions, and Votes

• No formal motions were moved, seconded, or voted upon during any segment of the budget workshops. The sessions consisted of departmental presentations, functional group overviews, public comment, and discussion between Board members and staff. No decisions were finalized, and no vote outcomes were recorded. The Board requested direction on restorations, allocation of one-time funds, cannabis revenue use, and jail housing options to shape the final recommended budget for release in May.